You Have a New Phone

question 43

Multiple Choice

You have a new phone. What determines what type of messages you can send?

• A)where you are geographically at any given time
• B)the embedded computer within the phone
• C)the type of phone
• D)the services offered by the mobile service provider

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered by future actions, and therefore should not influence current or future business decisions.

Out-of-pocket Cost

Expenses that are paid out directly and result in a financial outlay.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering fixed costs and generating profit.

Operating Capacity

The maximum output that a company can produce under normal circumstances over a specific period.